tv The Willis Report FOX Business January 23, 2013 6:00pm-7:00pm EST
on monday the affected towns on wednesday. wednesday's thanks. >> drink on sunday. who drinks on sunday? i know. drink on sundays. three days later you feel bloated and hanover. melissa: i thought it was amazing that they were assuming that women had not drink. you and they're kind of places. next up, check out this move in portland. engineers moved this entire bridge to another location 66 feet away. it is estimated that the 14 hour move saved the city between five and $10 million. overall it still cost $300 million. was that a good idea? the request and is, why the birds need to be moved all? >> deborah rear-ended. this is colubrids transplant. this is what the company you actually performs this is
calling these things. >> the whole company built around doing this? >> the first. >> the port authority here, moving the bayonne bridge. it's costing tons of money. they're raising it. melissa: there you go. one should move. thank you for coming on. that's all the "money" we have for you today. we will see you back here tomorrow. "the willis report" coming up now. gerri: hello, everybody. i'm gerri willis. tonight on "the willis report" the white house runs out of excuses and the keystone pipeline. president obama must now decide, approve or kill it. the faa stepping up its probe of boeing streamliners. of the quest to go green pushed the new jet too far. and this season's most important earnings report. apple, america's love affair with the iphone over? "the willis report" is on the case. ♪
gerri: all those stories coming up. first, we are asking, what is the holdup? now that your second term as well under way it's time to revisit something that should be at the top of your priority list after all, is something that would add hundreds of millions of dollars to the state economies and create tens of thousands of jobs right your home. the icing on the cake, it would help us as a nation become more energy independent. what is it? well, drumroll. approving the keystone xl pipeline. it is not just me. today senators on both side of the aisle have written a letter urging the president not to approve this pipeline right now. thanks to a major announcement from the governor yesterday, you're out of excuses, mr. president. joining me now, jerry taylor from the cato institute. great to have your. it's back in the president's hands once again. what is your betting on what you
will -- you will do? >> i don't know. they don't send me internal memoranda. my guess is he will approve the pipeline. it's very difficult to say no. the state department already argued the filing sometime ago that it would have minimal impact on the environment. not a lot of dispute that this would be good for the economy. gasoline prices may have been sliding, but they seem relatively high command others think of the pipeline as a way of addressing that. given all that i suspect the president will approve the pipeline, but i could be wrong. gerri: as you know, the governor of nebraska said it will change the root of the pipeline and make it go around and offered that supplies water to the state of nebraska and other folks. is this going to be enough to satisfy the greenies out there? will the environmentalist be happy? >> it won't satisfy the environmentalists because there have always been to arguments. the first is the potential impact on the offer. that has been addressed somewhat
by this change in the pipelines course. not enough for the environmentalists. the second issue has not been addressed here, which is the impact on climate change. the argument in criminalists offer is reducing the crude oil shipping into the gulf coast means more greenhouse gases in the hemisphere. tar sands are very carbon intensive forms of energy. they are believing that if we don't build the pipeline we won't produce so much crude oil from those tarzan's and will help protect the environment. what they're missing is the fact that without a pipeline it is not as if that oil will get produced. it is commanded is being shipped. this is being shipped by rail as opposed the pipeline. gerri: i want to get you to respond to something you just said. i want to go into detail on this idea. tarzan's more carbon intensive. how do you respond to that? it is actually true. >> well, it is true, building the pipeline is neither here nor there. if we don't build the pipeline
we will just use real some of the oil. gerri: it will be developed anyway. >> increase. it will be developed anyway because it's very profitable regardless of which the profits associated producing crude oil and alberta are significant enough to pay an extra $2 a barrel to ship it by rail as opposed to a pipeline which is what they have been doing trying to use the pipeline to get the problem is pointless. gerri: what is the most important benefit. >> it is a wealth creating enterprise. if you don't find wealth trading enterprise in the economy of fund economic growth. that is what economic growth is committee and creation of wealth creation. i think a lot of the argument for the pipeline beyond that tends to become somewhat of a stretch. the exact number of jobs that will be created by finishing the pipeline, the correct number of jobs is about 4700.
gerri: allow people are more optimistic. >> these numbers come from transcanada. gerri: understood. >> i'm sorry. gerri: what do you think is the most important impact for our country? >> people get to make profit. using the soil in gulf coast refineries. sorry i can't be more sexy than that. gerri: that's pretty sexy. i think that's pretty darn good. >> it doesn't really matter. first of all, crew from canada does not make us energy independent. it is borne crude, and most of it does not come from saudi arabia. comes from america. even if we work it would not make a lot of difference. it's not that big a deal. gerri: okay. great. thank you so much. another low priority of the president's energy agenda, hydraulic fracturing, better known as fracking.
we take a closer look. with more on this, the director of the new documentary fractionation. great to have you on the show. appreciate your coming in. environmentalists out there say fracking is horrible for people. makes them sick. it makes the landscape ugly. now, you're a journalist. what did you find when you actually started looking into this and interviewing people and talking to them and going to these communities are they fracking? >> i find lots of allegations and claims. my cat is sick. you know, all these allegations. but when you look at it and when you ask for the scientific proof of these allegations it's not there. a lot of lawsuits, of scary stories, but no scientific evidence that it harms anyone anywhere anytime. gerri: why did you get on to this topic? wire you interested in it? >> it is a sort of a long story. i, as a journalist, went and
interviewed the director of gas land, the big documentary that really brought fracking to the public awareness. i got in to admit that he knew there was a famous scene of people letting their tap water. he knew that people could let their water and american centuries before. i knew about that, but that did not included in my backyard tree because it was not relevant. i found that interesting. he get his lawyers to take it off youtube. i just -- that amazed me nfl the need to find out what he's covering up. and it's a great, great story. a great american dream story of the convention, technology is changing the way america is going to look to the future. gerri: let's talk more about that because what is happening at the end of the day, regular families are making a mint on this. people are getting wealthy, changing the fortunes not just of governments, but of individual families. is that you found? >> yes. i think it was an under reported aspect of the last election.
the reason president obama did so well in ohio and pennsylvania is because their is a fossil fuel boom in the state's. people are doing well. there is a feel-good factor. they go for the incumbent. there is definitely that aspect. it has brought tremendous prosperity. and i suppose money is not everything. if it was polluting the water or making the water go, it would not be worth it, but it's not. in the sun just me saying that. lisa jackson told congress twice under oath that she has never seen one example of fracking polluting water anywhere in america command has been going on for 16 years. so no more scary stories. the science is settled in this. it is not settled. gerri: i want to place some sound from her documentary. there is an interesting exchange between a family in the government on this very issue.
>> they say that fracking for natural gas polluted their water. >> we had iron chloride sodium. >> and here they are when they learned a great news from the epa that their water is perfect. gerri: so, it's not just environmentalists. it's not degrees out there her jumping up and down. apparently some people in the heartland are. >> well, when you are in the middle of a very lucrative multimillion-dollar of seed you make all sorts of allegations against oil and gas companies. this family to my involved in a multibillion-dollar lawsuit. and he told me, you get three types of uranium in his water, and two of them are weapons-grade. the independent. that was looking around. and this is reported by journalists from all over the world. where is your scientific evidence? two types of weapons grade uranium.
the iranian secret service will be their bottling the water. they're not there. gerri: i want to ask you about mandamus film because he is highly critical. it is not doing well at the box office. >> it has been a disaster. funny, it's not a bad film. it has a bit of sex, a bit of violence, but a drinking. as an irishman i love it. it just to my think what happened was matt damon went public and said it's not about fracking, it's about american -- it is about fracking. cuts be honest. gerri: you came to him, you came at him and said, look, your financing happens to be -- there is some hypocrisy going on here -- from who? a major international producing oil company? >> united arab emirates which makes 98% of its gross domestic product selling oil to the last.
finance, help finance promised land. they stand to lose trillions of dollars if fracking goes ahead of america. so from their interest to produce and anti fracking movie. they give him the money. he says, oh, i didn't know. well, sorry. it's a responsibility to know. if you didn't know, why don't you give the money back? gerri: well, play the sound of we have time. want to get this in because it's fascinating. you estimate question, and he responds. here you are. >> one of the -- middle eastern. the middle eastern government. aware the emirate's nation. [indiscernible] gerri: how does he not know?
how does he not now? >> and earlier in the interview he said, i was a writer, director, but i also have my producer's hat on. i went all the meetings. look, everyone has great ideas in hollywood. the big steel is getting the money. of course knew where was from. it's -- and it's a big story. i think that's another reason why promise land failed. people didn't like where the money came from. it did not like the way matt damon handle that. c'mon. man up. admit. i'm saying to the ag, the man. gerri: you get the award for balls in a standing up in a room like that and asking him the hard question. it's great to have you on the show. thank you for coming on. come back sometime sen. >> great. it's a pleasure. gerri: watch it. it's awesome.
thank you so much. all right. now we want to know what you think. here's our question. is president obama's green agenda hurting our energy development? log on to gerriwillis.com and on the right hand side of the screen in a share the results of the in the the shell. a lot more still to come this hour, including a comment by the always ridiculous congressman charlie rangel that has me fired up. banks, the dream liner around the globe. why this massive project is a major nightmare for the green movement. don't go away. ♪ ♪
nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office. [ slap! ] [ slap! slap! slap! slap! ] ow! ow! [ male announcer ] your favorite foods fighting you? fight back fast with tums. calcium-rich tums starts working so fast you'll forget you had heartburn. ♪ tum tum tum tum tums
battery fires on boeing 787 dream liner could be traced to one thing says my next guest. you can simply point the finger at the government's obsession with pushing green energy. assisted but the national legal and policy center joins me now. welcome back to the show. you know, it occurred to me that we are reporting on this boeing story all wrong. all the reporting use the talks about the fires. it never goes back to this idea that companies are being pushed very hard by a governments all over the world to make these green products. whether they are ready for the market are not. >> right. well, you know, boeing may be a little bit further down the chain, but it is a result of that. the green energy agenda ever since al gore in an inconvenient truth came out pushing the cause of climate change trying to make transportation more fuel efficient. you know, companies are going to try to be more fuel efficient
anyway. this is to the point where they're pushing technology, pushing efficiencies that the technology may not be ready. the government is incentivizing it, putting a billions and billions of dollars out there for companies like boeing, electric vehicle companies, battery companies said produced this technology that is just not ready for the demand that they have. gerri: us talk about what is green about the dream liner. the exterior of the thing is made of different materials, more lightweight materials. then they have this lithium ion battery let it do when there are a laptop. >> that's right. they say the popular science says the dream liner is about 80 percent composite. composite materials, they take a lot of aluminum of it. the use different metals. they'll have the same problem, this thing they call the experts
called thermal run away. they overheat. the warm-up. laptops and cell phones, chevy volt. and that is what is concerning the fa right now, the dream liner and to the point where they and some airlines all around the world have grounded their 787 until they figure out what's wrong. gerri: here are the claims from boeing. unmatched fuel efficiency resulting in exceptional environmental performance. using 20% less fuel. the and everybody else in my group, we all had problems with lithium -- i am the theme batteries. it's a surprise. you pick up your laptop. it's burning hot and it's because the batteries are overheating. >> i told somebody on the radio
today, have a laptop that ran really hot. it was a mac book. i replaced it this year and it runs cooler. they can improve the technology, but now they're putting them in cars, airplanes, and these are enormous batteries. they are just not -- they have not been tested adequately at. you know, the faa did a lot of testing and spend a lot of time on this, but they have been in design and development for about two years now. still have worked all the bugs. gerri: reassuring. >> deasy -- de incentivizes it. does not mean it's going to happen. gerri: before you go, how are taxpayers on the hook for this? >> well, the state of washington offered billions of dollars to keep that dream liner. boeing wanted to get out of washington because of union labor costs. the move their headquarters to chicago in 15 years ago. their desperate to keep the dream liner, so they ponied up a lot of money. south carolina and a part of the production. the faa is putting millions in incentives for this.
so it's another so-called taxpayer investment in green technology. losing a million dollars a day by having this airplane grounded gerri: there are always problems when you roll on a new product in that industry. at think we have seen it. this is sort of over the top banana think you have to ask yourself to know what we'd be better off if the airline makers , people who are making these planes themselves were making the innovations themselves without all the help paul with of the prodding of the pushing? >> well, the other side of pushing is the demonizing of fossil fuels. and you know, those regulations have strangled it and driven up the cost of fossil fuels. why couldn't -- if there was a true free-market like it we have cheaper fossil fuels, cleaned and then everything. do the functions that these
airplanes need. they replaced a lot of what the fossil fuels did in the dream liner with battery power, and that's why they're so dependent on lithium ion battery. it will be hard to replace. it's a big part of the structure of the airplane. gerri: a long haul. always great to hear from you. >> good to be with you. gerri: belling, as we were talking about, faced fierce opposition when it was building a plan for the ill-fated dream liner. did not want the company to move to right to work state. unions may not have the power they used to. a sharp decline in last year from nearly 12 percent of all workers to just over 11. that is the lowest level since the 1930's. tell union fell by about 400,000 workers and is now under 14 and a half million. unions a steadily lost ground with members since their peak in the 1950's. as they should. back then union serve the purpose standing for the workers, the little guy, the
average joe. more of a political machine and the only ones they care about other people on the front office. coming in, the house passing a debt ceiling bill doing nothing but pushing of the problem until making the can down the road. and new york congressman sat -- has me upset tonight. they're going to want to you this. stay with us. albrecht, he could not be more wrong. ♪
calling out the south which is exactly what happened recently in a tv interview. new york congressman telling the most other states should adopt gun laws exactly like the one passed in the state of new york. >> new york, it's a little different and more progressive and a lot of areas and some other states. some of the southern areas of cultures that we have to overcome. gerri: cultures that we have to overcome. all right. i forgot. the south is still a backwater to new york. the region languishes in a post antebellum haze of poverty and backwardness. in truth, my friends, the south has benefited from long-term strategies of keeping out unions and attracting more mark companies to relocate from the west bell as well as overseas. boeing recently built a plan in south carolina. leno chinese company building a laptop country. not new york, new jersey, but no
carolina. bmw, could go on and on. it's not serendipity that causes companies to move. strong economic policies including the right to work legislation and low taxes have built taxes into a juggernaut. when governor rick perry was running for president he could claim, rightly, that his they created more than one-third of all of the jobs created in the entire country since the recovery began in 2009. amazing. not new york. not connecticut. texas. the lone star state unemployment rate of 6% handily beats up the nation. then there is louisiana, virginia. five and a half percent. oklahoma, five. new yorkers, pardon me, over 8%. the jersey, nine and a half percent. these metrics matter. the south is ticking new york's but the reid is a culture difference? hello, yes. thank goodness. i thought that is what liberals celebrated, diversity. i guess i probably shouldn't get
so upset. after all, he has had this problem. the 40 year-old congressman was censured by the house two years ago after facing charges of 17 years of unpaid taxes on property in the dominican republic and more than 500,000 in undisclosed public assets. crazy. he also was investigated for raising millions from companies with business before the committee each year. by the way, it's not all bad. he won a purple heart and a bronze star for his service in the korean war. that's good. you know what, he is still in office. despite the center, the tax embarrassment to mothers keep returning to office 40 years later. the cultural implications? i'd say it's a culture of corruption that is to be overcome. coming up, how apple's earnings could impact you and your money, and you might not even know about it. congress living up to its reputation today passing a debt ceiling bill that takes the proverbial cain than the proverbial rug. the political panel weighs in next.
you know it can be hard to breathe, and how that feels. copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd spiriva helps me breathe better. (blowing sou)
ask your doctor about spiriva. aww man. [ male announcer ] returns are easy with free pickup from the u.s. postal service. we'll even drop off boxes if you need them. visit usps.com pay, print, and have it picked up for free. any time of year. ♪ nice sweater. thank you. ♪ [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lier average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses
to read and consider carefully before investing. ♪ >> from our fox business studios in new york, here again is gerri willis. gerri: i hate to say it, the debt limit, we're talking about that. the debt limit is on its way to getting punted until the spring, the house approving a four month debt ceiling extension. senate majority leader harry reid saying the senate will pass the house bill quickly. with more, a columnist for the national review and columnist for the new york post. i have my dreams team here to talk about this. i want to start with you because you're sitting right across from me. they are just taking the stand down the road. i mean, look, at the end of the day we are talking about waiting until may. >> i think we will be talking about this for most of the year because obviously there is a huge gulf between the president and the house. the house would like to not raise the debt ceiling at all. as they're preference, at least the majority of them.
but they can't do that because they can't get the spending cuts to offset anything. what they're doing is trying to buy some time. the middle ground between doing nothing and surrender entirely. gerri: the middle ground. >> between surrender in doing nothing in all. on satisfying, but irresponsible piece of action. gerri: okay. well, what do you say? the interesting part of this command of one to you what you have to say. apparently the senate will okay this idea that it won't get paid if they don't create a budget. that's not really true. they will get paid, but the money will go into an account somewhere and be held for a while. they eventually will be paid. the end of the day and don't really see any bodies and getting smacked. >> well, the money will be held until the very end of 2014, the end of this congress. another thing people wanted paychecks held for 20 months. at think this is the only thing that got their attention. today democratic senators
announced it will have a budget resolution on april 15th. gerri: do you believe them? do you think it will do this tech it's been four years. >> losing your pay check for 20 months -- gerri: the average congressperson is we will tear than the average american. >> i think doing does it to the budget resolutions is like riding a bicycle. you have not done it for four years, but you know how. there is a poison pill in it for the republicans. the democrats will include tax hikes of one form or another. it will pass a budget that the house will not pass. we can get through this preliminary skirmish by putting off the debt ceiling for four months or three months, but in the and we're still going to have a budget fight about what is actually in the budget. that is still to come. gerri: to you. >> the good news is we have two other opportunities in which we can address the spending problem. the debt problem of the half.
on march 1st the sequester cuts, the automatic spending cuts come into affect. people hold the line, those will be -- [talking over each other] >> a little bit. less than half. that can be adjusted later with an emergency supplemental if there are serious problems. secondly, march 27 the government runs out of money because we have not had the budget the last three or four years. really been operating by continuing resolutions that continue spending at the same level. their i think republicans are on strong ground saying we need to have spending cuts your. not just the rich but social security payers. so i think this is only the third option that we are going to have the debt ceiling. gerri: you're telling me my life could be filled with this for months to come. >> look, it took us 20 years to dig into this whole and it will take us 20 years to get out. >> to help care wrong. i think that it if the economy was going you could take out far
faster. have a turnaround that would surprise people. >> but there is nothing the president has said he is willing to sign of the true growth measure. we just raised taxes on capital gains. >> other countries are lowering them. >> the president, as john said, has shown no sign of wanting to cut. the only ones to raise. he wants to increase spending. the last tax hike will go spending cannot deficit reduction. gerri: amelie dissing not want to cut spending, democrats just want to demonize the republicans. surprisingly, here is john dickerson. the town that the president in the white house should take care. obama's only remaining option is to pulverize, whether you succeed in passing legislation are not, his goal should be to delegitimizes opponent through a series of clarifying fights over controversial issues. for republicans to side with the coalition's most extreme elements are caused a rift in the party that will leave it at least temporarily in disarray.
trying to finish off the republican party. >> i don't know what the ultimate aim is, but i think all of the issues the president wants to for some republicans will have that effect of dividing the party. we have already seen that. now what the president is going to do but what he has been doing for the last six weeks. gerri: to you. >> the president of four years ago celebrate the parsing gridlock, hope and change. now in his inaugural address, he steers of the opposition and uses their ideas as illegitimate. we have, long way down the road to even worse gridlock and even worse partisan posturing. it's very sad. gerri: at think you got it right there. thank you for coming out tonight. great to have the two of you here. thank you. now we want to bring you the latest developments in the investigation into the terrorist
attack in benghazi. secretary of state hillary clinton making her last formal appearance as america's top diplomat on the hot seat today facing the senate. she once again took full responsibility for the department's missteps' leading up to the attack that killed a master chris stevens and three other americans in libya. clinton also took issue with questions surrounding u.n. ambassador susan rice who said days after the attack protests, not terrorism or because. >> the fact is we had four dead americans. a protester because of guys out for a walk when i decided it would go kill some americans. what is the difference at this point? it is our job to figure out what happened and do everything that we can to prevent it from ever happening again. gerri: clinton insisted the state department and the fbi air moving swiftly and aggressively to strengthen security at u.s. missions worldwide, but that was not enough republican senator rand paul.
>> had been president at the time and i found that you did not read the cables from been gauzy, you did not read the cable from ambassador stevens, will relieve you of your post. i think it is inexcusable. gerri: clinton maintains he never saw any request for beefed up security in the area. when we come back, is the irs coming after your retirement? next, the most anticipated report of the earnings season. find out what apple had to say and if it could hurt your portfolio. ♪
gerri: in case you missed it, apple reporting first quarter earnings after the closing bell today. record sales. the stock plummeting after hours. take a look. down more than 10%. now, whether you own individual shares or not, you want to pay attention because chances are a mutual fund you own invests in apple. joining me now, equity strategist at investment manager hillary cramer, president and ceo of at&t capital in the author of the book, the little book a big profits from small stocks. we're talking about big stocks today. i need to know what did you see in an apple report that caught your attention? >> the profit margins to these famous operating margins that were so strong, down six percentage points to 38. that is a really bad sign because at the end of the day apple is a technology hardware company and prices are dropping, and the company has begun this
downward spiral. we have not seen the letter yet. gerri: so they sold 47 million iphones. that's a record for them. why is that wrong? >> because the price on iphones, the older versions are dropping. sales were not as robust as expected. across the board to mike cannibalization. the average price dropped. it's about pricing, and for the third time apple has shown the investment community that there not going to keep beating on the numbers. gerri: it will be interesting to see if apple continues to lose momentum. >> investors should know, don't try to catch a falling knife. that really applies in this particular situation. gerri: you would not buy on the way down. >> you would not let it continue to drop. apple will form a base. there might be an opportunity to get back in because on the pew evaluation level it is a cheap company, but it's also getting cheaper because of these margins
gerri: to other stocks are want to talk to you about that have earnings coming up tomorrow and next week, microsoft and yahoo. we will start with microsoft. >> by microsoft before earnings tomorrow afternoon. gerri: what you like it? >> because we have windows eight which everyone seems to be disappointed in, but i think we're going to see that enterprise software and other areas of microsoft, including their hybrid cloud businesses will do well. microsoft is a really cheap stock at around $27, $8 of cash. it trades at about $6. this year's earnings. microsoft could really surprised gerri: a practical question. they don't have bus. the technology stocks after all. >> so unpopular, so on love right now.
that numbers, that -- that metrics. the page views, he now, finance committee continued to drop. you don't want to on yahoo ahead of monday's earnings after the bell. the other problem, a lot of the support in the stock of yahoo has to do with excitement around the see of there. might actually to support the street. gerri: i just want to return for a second to apple because a lot of people out there probably think my don't own apple. i own mutual funds. i'm not worried about my portfolio. at the end of the day you might. take a look at these numbers. portfolios that have 19%, 20 percent of their fund invested in this single stock. likely it is high for you out there they york over invested in apple. go to one of the web sites that can do fund analysis. morningstar.
find out how much of your portfolio, how much of your retirement is exposed. at the end of the day, you can do yourself a big favor by making sure that you don't have too much of your money, too much of your retirement in apple's shares or anyone's share of any stock for that matter. all right. moving on to this day in history in 1957 the company called whammo rolled out its first batch of arab dynamic plastic disks. you know them today as a freebie. the story began with a group of college students in connecticut would throw into pie tins each other screaming frisbee when they let go. they were hoping to cash in on the craze over space and ufos. the company's intent on the craze damning the plastic version of the desk the pluto platter. to this day more than 60 companies produce one of america's most popular toys and more than 300 million for is bees have been sold. played by millions all over the world. the first was introduced this business take january 23rd 56 years ago today.
♪ if you have a retirement plan to listen up. your nest egg could get slapped with the 50% tax penalty. if the irs catches you breaking just one rule. founder and president of diversified financial consultants. welcome back to the show. we were talking about this last week and we did not have time to get into wood, and that this is critical. there is a rule, required minimum distribution if you are in retirement.
>> the rule, required minimum distributions have to do with the access that you have an ira accounts. you have reached a 70. the irs, congress, wanted to take the money out of the retirement account. gerri: this has been around a long time. people know about it. you say people forget about it. >> well, we have to start with, it's 70 and a half, silver dealing with people under 70, 80, 90 years old. we have lots of 70, 80, nine year olds. all the sudden death in this complex confusing paperwork and amount. now many people understand the calculation, and what works out. a little difficult to stay in compliance. 50% penalty if you don't take that money out of the ira account. gerri: okay. let's back up just five pieces here. because these are folks who are retired. >> correct. gerri: living on fixed income, probably trying to be very careful. their seniors.
and this is a rule that has not been enforced necessarily all that much in the past. people have been able to slide on this may be a little bit. now you say the irs warning, we're coming after you, coming after you, mr. 75 year-old. coming after you. if you're not taking of the minimum required. >> very difficult to find these people. i mean, reporting was not that great. now every custodian on the planet, bank of brokerage account sending out form 5498 which reports to the irs what your year end balance was in your retirement account. gerri: palin no. >> palin no. whether it's sitting in the bank, brokerage account to my annuity, it does not matter. that document reports to the irs the total of your retirement account to make you better be complying with this will. gerri: do you think the irs and federal government is trying to get their hands on more of our bill? >> of the end of the day it really is an issue of the need the money. they go where the money is command we have clients with
very substantial retirement accounts. the penalty can be brutal. i think really this is a bucket in the individual to actually withdraw the money out of the ira and a federal and state income-tax. gerri: just to be clear, were talking about profit-sharing plans, 401(k) and, of course, the traditional ira. all these plans are subject to this rule. >> and one of the biggest problems, an individual may have all these different plans. you have to look in total at the total bucket and do the calculation. gerri: are my favorite. thank you. >> thank you. gerri: we'll be right back. ♪
hey, buddy? oh, hey, flo. you want to see something cool? snapshot, from progressive. my insurance company told me not to talk to people like you. you always do what they tell you? no... try it, and see what your good driving can save you. you don't even have to switch. unless you're scared. i'm not scared, it's... you know we can still see you. no, you can't. pretty sure we can... try snapshot today -- no pressure. gerri: the keystone oil pipeline may have won approval from nebraska's governor yesterday, but the final decision rests in the white house, and president obama is not likely to get it go forward due to the environmental concerns, is probe's green agenda